STC SERIES 66 CHAPTER 9 TEST QUESTIONS
AND CORRECT ANSWERS WITH VERIFIED
SOLUTIONS LATEST EDITION 2025-2026
GRADED A+
A publicly traded corporation has 20,000,000 shares of common stock outstanding
and an investor buys 1,400,000 of the shares in the open market. Which of the
following forms is the investor required to file with the SEC? - CORRECT
ANSWER - Form 13D
Any investor that acquires more than 5% of the common stock of a reporting
company is required to file Form 13D with the SEC. Since the client has acquired
7% of the 20,000,000 outstanding common shares ($1.4 million ÷ $20 million), he
is subject to the filing requirement. Form 13F is filed by institutional investment
managers that exercise investment discretion over $100 million or more in equity
securities. Form 144 is filed when an investor intends to sell restricted (private
placement) stock or when an insider intends to sell control stock.
Under Regulation D of the Securities Act of 1933, accredited investors include:
Accountants
Insurance companies
Any senior officer of a publicly traded company
Individuals with a net worth of one million dollars or more - CORRECT
ANSWER - II and IV only
No single profession is specified in the definition of an accredited investor. Senior
officers are included if they are senior officers of the issuer. Institutional investors,
such as insurance companies, are specified in the regulation. A person with annual
income of $200,000, or net worth of $1 million, is also considered accredited.
When a client purchases mutual fund shares from a broker-dealer, she receives a
summary prospectus. When will the broker-dealer send the client a statutory (final)
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, prospectus? - CORRECT ANSWER - After the purchase has been completed, if
requested
According to the Investment Company Act of 1940, a client who purchases mutual
fund shares must receive a statutory prospectus after the purchase has been
completed. Therefore, if a summary prospectus is delivered first, a client must
receive or be given access to the statutory prospectus, if requested.
According to the Securities Act of 1933, a pooled investment fund is considered a
federal covered security when it: - CORRECT ANSWER - Registers with the SEC
under the Investment Company Act of 1940
An investment pool is considered a federal covered security when recognized as an
investment company under the Investment Company Act of 1940 and when its
offering is registered with the SEC. Requesting an exemption or employing a
federal covered adviser does not make an investment pool an investment company.
Which of the following events would NOT require a public company to file a Form
8-K report? - CORRECT ANSWER - A minority owned subsidiary changes
locations
Form 8-K is the report that companies must file with the SEC to announce material
corporate events that shareholders should know about. A change in the location of
a minority owned subsidiary is not a material event which may affect the company
or its shareholders. All of the other answer choices represent events which require
the filing of a Form 8-K.
Which of the following would NOT be defined as an affiliated person under the
Investment Company Act of 1940? - CORRECT ANSWER - The outside legal
counsel for an investment company
According to the Investment Company Act of 1940, an affiliated person is
considered any officer, director, partner, copartner, or employee of the investment
company. The term also includes any person who directly or indirectly owns,
controls, or holds, with power to vote, 5% or more of the outstanding securities.
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AND CORRECT ANSWERS WITH VERIFIED
SOLUTIONS LATEST EDITION 2025-2026
GRADED A+
A publicly traded corporation has 20,000,000 shares of common stock outstanding
and an investor buys 1,400,000 of the shares in the open market. Which of the
following forms is the investor required to file with the SEC? - CORRECT
ANSWER - Form 13D
Any investor that acquires more than 5% of the common stock of a reporting
company is required to file Form 13D with the SEC. Since the client has acquired
7% of the 20,000,000 outstanding common shares ($1.4 million ÷ $20 million), he
is subject to the filing requirement. Form 13F is filed by institutional investment
managers that exercise investment discretion over $100 million or more in equity
securities. Form 144 is filed when an investor intends to sell restricted (private
placement) stock or when an insider intends to sell control stock.
Under Regulation D of the Securities Act of 1933, accredited investors include:
Accountants
Insurance companies
Any senior officer of a publicly traded company
Individuals with a net worth of one million dollars or more - CORRECT
ANSWER - II and IV only
No single profession is specified in the definition of an accredited investor. Senior
officers are included if they are senior officers of the issuer. Institutional investors,
such as insurance companies, are specified in the regulation. A person with annual
income of $200,000, or net worth of $1 million, is also considered accredited.
When a client purchases mutual fund shares from a broker-dealer, she receives a
summary prospectus. When will the broker-dealer send the client a statutory (final)
1|Page
, prospectus? - CORRECT ANSWER - After the purchase has been completed, if
requested
According to the Investment Company Act of 1940, a client who purchases mutual
fund shares must receive a statutory prospectus after the purchase has been
completed. Therefore, if a summary prospectus is delivered first, a client must
receive or be given access to the statutory prospectus, if requested.
According to the Securities Act of 1933, a pooled investment fund is considered a
federal covered security when it: - CORRECT ANSWER - Registers with the SEC
under the Investment Company Act of 1940
An investment pool is considered a federal covered security when recognized as an
investment company under the Investment Company Act of 1940 and when its
offering is registered with the SEC. Requesting an exemption or employing a
federal covered adviser does not make an investment pool an investment company.
Which of the following events would NOT require a public company to file a Form
8-K report? - CORRECT ANSWER - A minority owned subsidiary changes
locations
Form 8-K is the report that companies must file with the SEC to announce material
corporate events that shareholders should know about. A change in the location of
a minority owned subsidiary is not a material event which may affect the company
or its shareholders. All of the other answer choices represent events which require
the filing of a Form 8-K.
Which of the following would NOT be defined as an affiliated person under the
Investment Company Act of 1940? - CORRECT ANSWER - The outside legal
counsel for an investment company
According to the Investment Company Act of 1940, an affiliated person is
considered any officer, director, partner, copartner, or employee of the investment
company. The term also includes any person who directly or indirectly owns,
controls, or holds, with power to vote, 5% or more of the outstanding securities.
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